Bright Food Group Co. agreed to sell Weetabix Ltd.to USA cereal maker Post Holdings Inc.in a deal valued at about 1.4 billion pounds ($1.8 billion).
St. Louis-based Post Holdings Inc. said that the deal will allow it to grow its USA brands internationally and expand Weetabix in North America.
"The transaction is expected to be completed by the third quarter of calendar 2017 (Post's fiscal 2017 fourth quarter), subject to the satisfaction of limited closing conditions, including the expiration of waiting periods under USA antitrust laws", Turrell told us. It was family-owned until 2004, when it was acquired by investment group Lion Capital.
"Looks like a big price but opportunities in the breakfast cereals market for players like Post, who are committed to that sector, are few and far between so they had to pay what it took to get it in an auction".
Through its Post Consumer Brands business, Post Holdings is a leader in the North American ready-to-eat cereal category.
Locally-based Post Holdings, best known for its cereal brands, is acquiring a British breakfast favorite.
"This is a part of our internationalisation strategy".
Baker McKenzie, Linklaters advise on $1.76 billion cereal deal "Aussie Kids may be Weet-Bix kids" but Chinese investors in a similarly-named product have sold their business to a USA firm, with help from some major law firms. "Going forward Bright will stick to our overseas push", a company spokesman said.
Representatives of Post and Weetabix didn't immediately respond to requests for comment.
The Chinese owner of Weetabix is selling the iconic cereal firm to United States company Post Holdings, according to reports.
Post has agreed in principle to establish a JV with Bright Foods and Barings Private Equity Asia to manage the Chinese operations.
Post, which recorded annual revenues of 5 billion U.S. dollars (£4 billion) to September 30 last year, said the tie-up would bolster earnings by £120 million a year.
It said it still expects 2017 adjusted EBITDA of $920 million to $950 million, excluding any contribution from Weetabix.